Let’s wrap up this week’s series of intraday charts update with a short-term triangle on EUR/CHF and a potential retracement play on AUD/USD.
EUR/CHF has been trading sideways for a while now. However, if we connect the most recent peaks and troughs, we can see that price action appears to be tapering into a point, forming that there symmetrical triangle in the process.
As y’all should know by now, a symmetrical triangle may break either to the upside or the downside. It would therefore be a prudent move to plan ahead for both scenarios.
Just know, though, that an upside move needs to clear both 1.1700 and 1.1720 on strong bullish momentum. A downside breakout, meanwhile, needs to smash lower past 1.1600.
Whichever scenario plays out, the resulting breakout move will likely have enough steam for a 120-pip move, based on the height of the forex chart pattern.
AUD/USD sprinted higher but quickly ran out of steam when it encountered resistance at 0.7690. There’s therefore a chance that the pair may pull back before having another go at 0.7690.
Stochastic is already close to oversold territory, so support will likely form at 0.7640. However, there’s a risk that the retracement could be deeper.
And using our Fibonacci tool, we can see all retracement levels are in play since the 38.2% retracement level sits right smack on the area of interest at 0.7620. The 50% level, meanwhile, is just below the 0.7600 major psychological level. As for the 61.8% retracement level, that’s just below the area of interest at 0.7580 and the 200 SMA could potentially act as dynamic support to boot.
Well, whichever price area you thinks the pair will respect as support, just remember to practice proper risk management, a’ight?